Due to drops in worldwide wholesale, Kontoor Brands reported on Tuesday that its first-quarter revenues dropped 1 per cent to US $ 623 million.
According to the US denim purveyor, Wrangler’s US revenues increased 3 per cent to US $ 420 million, with a 2 per cent increase in wholesale and a 14 per cent increase in direct-to-consumer sales driving the increase. Due to a 12 per cent decline in direct-to-consumer sales and a 2 per cent increase in wholesale, Wrangler’s foreign revenue remained unchanged.
In the meantime, Lee brand revenue was US $ 200 million, down 9 per cent from the previous year. Due to a 3 per cent increase in direct-to-consumer sales and a 9 per cent decline in wholesale, Lee’s US revenue fell by 8 per cent. A 15 per cent drop in wholesale and a 1 per cent increase in brick-and-mortar retail were the main causes of Lee’s 11 per cent drop in foreign income.
Kontoor Brands CEO Scott Baxter said the company continued to build brand strength, expand market share, and grow across categories and channels, while improved gross margins supported strong earnings, cash flow, and better returns on capital.
Baxter added that despite major disruptions over the past five years, Kontoor has built a resilient organisation and operating model. With Project Jeanius in motion and the upcoming addition of Helly Hansen, the company is poised to deliver greater long-term value for shareholders.
